NYSE:LEG

Stock Analysis Report

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Executive Summary

Leggett & Platt, Incorporated designs and produces various engineered components and products worldwide. More Details


Snowflake Analysis

Average dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

How has Leggett & Platt's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LEG is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LEG's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

1.9%

LEG

1.7%

US Consumer Durables

2.8%

US Market


1 Year Return

-15.3%

LEG

22.5%

US Consumer Durables

20.7%

US Market

Return vs Industry: LEG underperformed the US Consumer Durables industry which returned 21.9% over the past year.

Return vs Market: LEG underperformed the US Market which returned 19.8% over the past year.


Shareholder returns

LEGIndustryMarket
7 Day1.9%1.7%2.8%
30 Day9.0%10.1%12.3%
90 Day6.8%8.5%6.4%
1 Year-11.8%-15.3%24.0%22.5%23.4%20.7%
3 Year3.5%-7.5%16.9%12.6%47.2%37.4%
5 Year13.7%-3.9%52.5%42.6%94.1%72.7%

Long-Term Price Volatility Vs. Market

How volatile is Leggett & Platt's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Leggett & Platt undervalued compared to its fair value and its price relative to the market?

25.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LEG ($44.3) is trading above our estimate of fair value ($43.96)

Significantly Below Fair Value: LEG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LEG is poor value based on its PE Ratio (26x) compared to the US Consumer Durables industry average (14.4x).

PE vs Market: LEG is poor value based on its PE Ratio (26x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: LEG is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: LEG is overvalued based on its PB Ratio (4.5x) compared to the US Consumer Durables industry average (1.6x).


Next Steps

Future Growth

How is Leggett & Platt forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

15.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LEG's forecast earnings growth (15.4% per year) is above the savings rate (2.2%).

Earnings vs Market: LEG's earnings (15.4% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: LEG's earnings are forecast to grow, but not significantly.

Revenue vs Market: LEG's revenue (5.4% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: LEG's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LEG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Leggett & Platt performed over the past 5 years?

-5.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LEG has high quality earnings.

Growing Profit Margin: LEG's current net profit margins (5.4%) are lower than last year (6.5%).


Past Earnings Growth Analysis

Earnings Trend: LEG's earnings have declined by 5.3% per year over the past 5 years.

Accelerating Growth: LEG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LEG had negative earnings growth (-23%) over the past year, making it difficult to compare to the Consumer Durables industry average (26%).


Return on Equity

High ROE: LEG's Return on Equity (17.8%) is considered low.


Next Steps

Financial Health

How is Leggett & Platt's financial position?


Financial Position Analysis

Short Term Liabilities: LEG's short term assets ($1.5B) exceed its short term liabilities ($947.4M).

Long Term Liabilities: LEG's short term assets ($1.5B) do not cover its long term liabilities ($2.4B).


Debt to Equity History and Analysis

Debt Level: LEG's debt to equity ratio (150.8%) is considered high.

Reducing Debt: LEG's debt to equity ratio has increased from 90.1% to 150.8% over the past 5 years.

Debt Coverage: LEG's debt is well covered by operating cash flow (32.4%).

Interest Coverage: LEG's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet


Next Steps

Dividend

What is Leggett & Platt current dividend yield, its reliability and sustainability?

3.61%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: LEG's dividend (3.61%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: LEG's dividend (3.61%) is low compared to the top 25% of dividend payers in the US market (4.05%).


Stability and Growth of Payments

Stable Dividend: LEG's dividends per share have been stable in the past 10 years.

Growing Dividend: LEG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (93.8%), LEG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LEG's dividends in 3 years are forecast to be well covered by earnings (25.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.2yrs

Average management tenure


CEO

Karl Glassman (62 yo)

4.83yrs

Tenure

US$10,193,912

Compensation

Mr. Karl G. Glassman has been the Chief Executive Officer of Leggett & Platt, Incorporated since January 1, 2016 and its Chairman since January 1, 2020. Mr. Glassman served as President of Leggett & Platt,...


CEO Compensation Analysis

Compensation vs Market: Karl's total compensation ($USD10.19M) is above average for companies of similar size in the US market ($USD6.90M).

Compensation vs Earnings: Karl's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Karl Glassman
Chairman & CEO4.83yrsUS$10.19m0.48%
$ 28.0m
J. Dolloff
President0.83yrUS$3.85m0.13%
$ 7.4m
Jeffrey Tate
Executive VP & CFO1.17yrsUS$2.29mno data
Scott Douglas
Senior VP10.83yrsUS$1.79m0.037%
$ 2.2m
Tammy Trent
Senior VP & Chief Accounting Officer5.5yrsno data0.022%
$ 1.3m
Susan McCoy
Senior Vice President of Investor Relations1.75yrsno data0.018%
$ 1.1m
Charles Hutchins
VP & Chief Tax Officer0.92yrno datano data
Steven Henderson
EVP and President of Specialized Products Segmentno datano data0.024%
$ 1.4m
Darrel Wild
VP & Chief Credit Officer0.92yrno datano data
Benjamin Burns
VP of Business Support Services & Treasurer0.92yrno datano data
Andrew Bender
Corporate VP & Treasurerno datano datano data
Wendy Watson
Director of Investor Relationsno datano datano data

1.2yrs

Average Tenure

55yo

Average Age

Experienced Management: LEG's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Karl Glassman
Chairman & CEO4.83yrsUS$10.19m0.48%
$ 28.0m
J. Dolloff
President0.83yrUS$3.85m0.13%
$ 7.4m
Judy Odom
Lead Independent Director0.83yrUS$321.24k0.049%
$ 2.9m
Manuel Fernandez
Independent Director6.83yrsUS$307.00k0.031%
$ 1.8m
Joseph McClanathan
Independent Director15.83yrsUS$269.52k0.024%
$ 1.4m
Phoebe Wood
Independent Director15yrsUS$352.12k0.045%
$ 2.6m
Mark Blinn
Independent Director1.5yrsUS$203.06k0.0053%
$ 314.1k
Mary Elizabeth Campbell
Independent Director1yrUS$100.00k0.0046%
$ 272.4k
Robert Brunner
Independent Director11.5yrsUS$329.76k0.017%
$ 1.0m
Jai Shah
Independent Director1.5yrsUS$202.06k0.0076%
$ 446.2k
Srikanth Padmanabhan
Independent Director2.25yrsUS$249.82k0.0071%
$ 416.8k

1.5yrs

Average Tenure

62yo

Average Age

Experienced Board: LEG's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Leggett & Platt, Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Leggett & Platt, Incorporated
  • Ticker: LEG
  • Exchange: NYSE
  • Founded: 1883
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Market Cap: US$5.871b
  • Shares outstanding: 132.52m
  • Website: https://www.leggett.com

Number of Employees


Location

  • Leggett & Platt, Incorporated
  • No. 1 Leggett Road
  • Carthage
  • Missouri
  • 64836
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LEGNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1970
LP1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1970
0JTTLSE (London Stock Exchange)YesCommon StockGBUSDJan 1970
L1EG34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 COMBRBRLJan 2020

Biography

Leggett & Platt, Incorporated designs and produces various engineered components and products worldwide. It operates through three segments: Bedding Products; Furniture, Flooring & Textile Products; and Sp...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 23:14
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.